Raymond A. Heers - Page 6

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               The Commissioner’s deficiency determination is normally                
          entitled to a presumption of correctness, Bone v. Commissioner,             
          324 F.3d 1289, 1293 (11th Cir. 2003), affg. T.C. Memo. 2001-43,             
          and the burden of proving the determination incorrect generally             
          rests with the taxpayer, Rule 142(a).  However, when a case                 
          involves unreported income and that case is appealable to the               
          Court of Appeals for the Eleventh Circuit, as this case appears             
          to be absent a stipulation to the contrary, the Commissioner’s              
          determination of unreported income is entitled to a presumption             
          of correctness only if the determination is supported by a                  
          minimal evidentiary foundation linking the taxpayer to an income-           
          producing activity.  Blohm v. Commissioner, 994 F.2d 1542, 1549             
          (11th Cir. 1993), affg. T.C. Memo. 1991-636; see also Golsen v.             
          Commissioner, 54 T.C. 742, 756 (1970) (Tax Court is bound to                
          apply the law of the circuit to which the case is appealable),              
          affd. 445 F.2d 985 (10th Cir. 1971).  Once the Commissioner                 
          produces evidence linking the taxpayer to an income-producing               
          activity, the burden shifts to the taxpayer to rebut the                    
          presumption by establishing that the Commissioner’s determination           
          is arbitrary or erroneous.  Blohm v. Commissioner, supra at 1549;           
          see also United States v. Janis, 428 U.S. 433, 441-442 (1976).              
               To satisfy his initial burden of production, respondent                
          introduced into evidence Form 1099-R, Distributions From                    
          Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,              






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